Shares rose 8.5% following the quarter as investors responded positively to the confirmation of the medical cannabis rescheduling to Schedule III and the clear path toward interstate commerce and export opportunities, which expanded the company’s addressable market. Despite adjusted EBITDA losses and margin pressure, the market focused on the strategic upside from regulatory progress and operational expansion.

• Revenue of $41 million and biomass production of 152,000 pounds aligned with guidance.
• Average selling price remained stable at $171 per pound, while cost of production stayed elevated at $175 per pound.
• Gross margin held at 25%, below expectations, contributing to an adjusted EBITDA loss of $4.2 million.
• Progress made on Greenhouse 2 expansion, with two-thirds of the new facility nearing completion for second-half production contribution.
• Regulatory advances including DEA license conversions and export application filings underpin potential for new interstate and international sales channels.